Financial Summary

Blue Shield of California reported a net income of $296 million in 2017, up from $67 million in 2016. This increase was due primarily to improved operating performance and the impact of new tax legislation. Of the company's 2017 revenue from premiums, 85 percent was spent on medical expenses.

Our 2% Pledge: In 2011, Blue Shield became the first health plan in the nation to voluntarily limit net income to two percent of revenue. Any year in which Blue Shield earns more than two percent, the company will return the difference to its customers and the community, with approval by the board of directors. Since we made the pledge, the company has returned more than $596 million to our customers and the community. 

The company also contributes annually to the Blue Shield of California Foundation, whose mission is to build lasting and equitable solutions that make California the healthiest state and end domestic violence. Blue Shield of California contributed $39 million to the foundation in 2017 and has given more than $500 million to the foundation since 2002.

Find information about Blue Shield’s 2017 executive compensation (PDF, 234KB). 


Blue Shield of California Consolidated Financials*

Membership in thousands ($ in millions) 2017 2016 2015 2014
Ending membership 3,797 3,926 4,080 3,481
Premiums, net & other revenue $17,684 $17,598 $14,836 $13,349
Less: medical expenses 15,035 15,085 12,369 10,948
Gross Profit
Medical expenses as a percent of premiums
$2,650
85.0%
$2,513
85.7%
$2,467
83.4%
$2,401
82.0%
Marketing and selling 685 631 595 570
ACA taxes, premium taxes and other fees 261 451 417 357
General and administrative 1,541 1,398 1,341 1,191
Total administrative expenses $2,487 $2,480 $2,353 $2,118
Pre-tax operating income $163 $33 $114 $283
Investment income 142 169 229 271
Income before taxes $304 $202 $343 $544
Income taxes 8 135 228 392
Net Income
Profit margin (net income as a % of premiums, net)
$296
1.7%
$67
0.4%
$115
0.8%
$162
1.2%
2% Pledge amount** $0 $0 $0 $0
Foundation contribution (millions) $39 $34 $35 $35

*Additional details on Blue Shield’s financial performance can be found on the California Department of Managed Health Care website by searching for “California Physicians’ Service.

​**In years when our profit margin is less than 2% we do not return any funds as part of our 2% Pledge commitment.